Actually, PSC could assist in an enhanced manner
Published 12:00 am Sunday, July 12, 2009
Most of the time, the Mississippi Public Service Commission operates without headlines.
That’s fine. Its basic purpose is simple and not controversial.
If someone decides connect a bunch of rural homes to a sewer system, the PSC exists to make sure (1) standards are met, (2) customers aren’t gouged on their bills and (3) the system owner, whether a cooperative or a private, for-profit business, can charge enough to create a reasonable return on the investment and keep operating.
The PSC’s jurisdiction also extends to water, natural gas, electric and telephone utilities — except any operated by a municipality.
Before changing rates, owners or managers of utilities must apply for permission. Three elected members of the PSC — one from North Mississippi, one from Central Mississippi and one from South Mississippi — have the final say.
Water quality, leaky sewer pipes ….. things like that are handled by other state agencies. The PSC’s business is the business of utilities — to keep them profitable, but not too profitable.
Usually, if the PSC makes news it’s in dealing with a petition from one of the big boys — Entergy, Mississippi Power, AT&T. This year, the Legislature adjourned without getting around to allocating PSC operational funds, so it’s been in the news and we’ve been offered a lesson in turf warfare.
Not funding the PSC was not an oversight. If was a shot across the bow.
To understand this, note that elected members of the PSC don’t answer to anybody except the voters. They do, of course, need money from the Legislature, just as the offices of the governor, the attorney general, the secretary of state and others do. But they don’t take orders from the Legislature or from the governor.
It’s one of those political realities that doesn’t sit well with legislators, and there’s a reason for that.
When a lawmaker is at home and the phone rings and a constituent is griping about his water bill, it runs against some lawmakers’ sense of self-importance to say, “Sorry, but I don’t have anything to do with that.” Similarly, when the operator of a local sewer company phones his state senator to explain how the cost of more and more state and federal regulations is driving up the cost of system operations and the PSC is refusing a rate increase, the senator is loathe to respond, “Sorry, but I don’t have anything to do with that.”
It’s not a criticism, really, to say lawmakers want power.
They wrested some of it from from the PSC during an era of corruption 20 years ago. In 1990, the Legislature created a new, separate entity — the Mississippi Public Utilities Staff. It is an administrative agency with directors serving six-year terms on appointment by governors.
At first blush, this might not seem like a big deal, but in terms of power-shifting it is.
PUS employees who do the field work, research and financial studies no longer rely on the elected members of the PSC for their jobs. The trio still has the power to hear petitions and complaints, but has no say in the staff work.
It makes a difference.
In some ways it’s safe to say the change was a half-step toward doing away with an elected PSC completely. That would put Mississippi in line with other states. All regulate utility practices and fees, but almost all do it strictly through an administrative agency which, like the Public Utilities Staff, has no elected members.
This year, the three commissioners had reportedly made a deal with House Democrats to add some staff. Gov. Haley Barbour found out about it and called it an illegal attempt to have PSC employees who would duplicate PUS work. Leaving no fingerprints, Barbour’s helpers in the Senate snuffed out not only the increase — but all PSC funds — to send a message.
Never think that governors and lawmakers don’t play high-stakes games of chicken with the public’s money. They do it all the time.
But just because the PSC usually operates below the public’s radar doesn’t mean it doesn’t have a crucial purpose.
Whether as an administrative agency, an elected board or, as we have, a hybrid, state regulators stand in the gap.
Mississippi really, really needs an aggressive, integrated energy development and utilities management plan, one that’s forward-looking.
Private interests are working on such a plan, but could use some help. The Legislature should commission the PSC or the Public Utilities Staff to work on that. The frittering we’re seen is politics, while what we need is, uh, public service.